Fresh details show Uber may lose over $1 billion in 2020 even with increased customers and revenue
- Information available to YEN.com.gh shows that Uber is likely to lose about $1 billion in the year 2020
- The company however has a growing customer base as well as growing revenue levels
- Its food delivery business, Uber Eats, is however facing challenges and relies on the mother company for support
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Ride-hailing company, Uber Technologies Incorporated is likely to lose about $1 billion in the year 2020.
This comes even in the wake of growing customers and revenue levels as the company strives to achieve profitability by the fourth quarter of 2020.
The company’s shares recently increased by 5% and the chief executive officer (CEO), Dara Khosrowshahi, revealed there is a likelihood of cutting costs.
Source: UGC
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The reason, it is believed, is because Uber wishes to generate more repeat-customer business as well as trying to increase use of premium ride services.
Khosrowshahi went on to say that Uber is determined to accelerate growth as its loss-making food delivery business, Uber Eats, attempts to become the top player in most of its worldwide markets.
This would, therefore, lead to an eventual increase in segment margins, which are currently a drain on Uber’s earnings, venturebeat.com reports.
In the fourth quarter of 2019, Uber increased its global number of users to over 111 million.
However, high costs at Uber Eats means the company would continue to lose money as it tries to outspend competitors.
In other news, YEN.com.gh has learned that Kenya has started work on Africa’s first hybrid power plant which costs $145 million.
Information available shows that the project is the result of the combined efforts of the Kenya Investment Authority (KenInvest) the Meru County Government and global renewable energy developers, Windlab.
Described as ‘the Meru County Energy Park’, the project is expected to be a large scale facility that combines wind, solar PV and battery storage.
When completed, the plant is expected to produce a total of 80MW of power to serve over 200,000 households.
It is also expected to have 20 wind turbines and over 40,000 solar panels, Business Insider reports.
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Source: YEN.com.gh
